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Digital is better: investment guru shifts gold to bitcoin

Christopher Wood, macro investor and crisis prophet in his own right, is shifting part of his gold position into Bitcoin. This adds another notable investor to „Team Bitcoin.“

The dominant bitcoin theme in 2020 was arguably the influx of institutional investors into the crypto market. As announced on Friday, December 18, another notable investor has jumped on the crypto bandwagon.

Bitcoin on a record run!

Christopher Wood, global head of equity strategy at investment bank Jefferies Group, is selling part of his gold position in favor of bitcoin. Business Insider first reported this, citing GREED & fear, an investment newsletter for professional investors published by Wood.

According to the report, Wood will reduce the gold position from his pension fund from 50 percent to 45 percent and invest the proceeds in BTC. To be sure, the investment strategist, who is known for predicting the subprime crisis in the U.S. in 2007, among other things, remains a gold bull. But if BTC corrects significantly lower, Wood reserves the right to add even more to his crypto position.

The 50 percent weighting of physical gold bullion in the portfolio will be reduced by five percentage points for the first time in several years. I’m investing the proceeds in bitcoin. If there is a large drawdown in bitcoin from current levels after the historic breakout above $20,000, the intention will be to add to that position.

Wood writes in GREED & fear.

Bitcoin is something Chris Wood has been looking at for quite some time. Until now, however, the risks were too great or incalculable. It was not clear whether BTC was really immune to hacks. The sword of Damocles of a ban has also kept him from allocating to the „Orange Coin“.

In addition to the five percent Bitcoin position and the 45 percent position in physical gold, Wood holds 30 percent in the Asian equity market (excluding Japan) and 20 percent in gold mining stocks.

The portfolio composition speaks for itself: Wood expects significant gains in the price of the yellow precious metal.

Bitcoin rather than gold

Shifting gold in favor of bitcoin is trending. Most recently, BTC-ECHO reported on British investment firm Ruffer, which plans to put 2.5 percent of its portfolio into the cryptocurrency. The investment was made in early December and came at the expense of its gold position.

One of the latest additions [to the portfolio] is bitcoin. This is primarily a defensive move that was made in November. The company had reduced its exposure to gold at that time,

the company wrote in a statement to investors.

Gold, as well as its digital counterpart bitcoin, serve similar investment theses. They serve as a kind of hedge against loose monetary policy by central banks, which some macro investors believe could lead to inflation in the long run.